Gasoline prices fall, diesel prices climb on Oct. 20

MANILA (UPDATED) — Gasoline prices are rolling back as diesel prices climb in the third week of October. 

The Department of Energy (DOE) said oil prices are moving by the following amounts:

• Diesel – P2.60/L increase

• Gasoline – P4.30/L decrease

• Kerosene – P1.00/L decrease 

DOE Director Rino Abad said the main reason why diesel prices spiked was higher freight and insurance costs. According to Abad, the data all came from oil players as the government required them to submit weekly price inputs.

Freight cost is the money used in transporting goods, and in this case is akin to the ship fare of fuel products from its origin, while insurance provides financial protection and compensation against unexpected losses.

Abad said these figures are actual costs of oil firms that the DOE needs to factor in the computation of this week’s price movement.

As of October 18, the country has enough fuel inventory to last nearly 2-months worth of supply:

• Diesel          59 days

• Gasoline     56 days

• Kerosene    191 days

• LPG             36 days

Abad said there is no need yet for the government to import diesel or LPG yet as the inventory remains on a comfortable level. 

Abad said there was a plan two weeks ago to import LPG and diesel when China decided to impose an export ban on fuel. But after the exports ban is lifted, there is no reason anymore for PNOC to purchase fuel to augment the inventory.